Business Ownership Pitfalls – Absentee Ownership
Many business buyers have the idea that they will buy a small business to create a second income. The idea is to put in 10 hours a week, or less doing the management functions such as, posting the quick books, making sure the employment forms are filled out correctly and are complete.
Covered by either of these lists include: Hiring and firing of employees, and covering for managers that are fired or walk out. . Someone needs to check the references of new employees. (Do you believe everything you are told?)
Business Ownership Pitfalls — Quality control issues in all areas of the business are very important and have to be addressed. The last and most important issue is making sure that the manager and/or other employees are not acting like silent partners and stealing the owners blind. This is guaranteed to happen if the staff feels that they can get away with it, which they can, as long as the owner is not around most of the time.
Beware! A fool and his money are soon parted.
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